Oil steady as positive Chinese signals

Oil steady as positive Chinese signals counter recession fears

Oil prices remained steady in volatile trading on Monday as China’s continued accommodative monetary policy offset concerns that high inflation and energy costs could drag the global economy into recession.

Brent crude futures fell 2 cents (0.02%) to $91.67 a barrel, down $11.
37 pm EDT (1537 GMT), recovering from a 6.4% decline over the past week. US West Texas Intermediate crude rose 4 cents (0.4%) to $85.57 after falling 7.6% last week.

China’s central bank on Monday extended its medium-term policy lending while keeping interest rates on hold for two months, in a sign that monetary policy remains lax.

Beijing will also significantly expand its domestic energy supply capacity and strengthen risk management for key commodities such as coal, oil, gas, and electricity, a senior official from the National Energy Administration said on Monday. Another state official said at a press conference in Beijing that China will continue to expand its stockpiling capacity of key raw materials.

China’s third-quarter trade and gross domestic product data, as well as September activity data, are due out on Tuesday, with quarterly growth likely to pick up from the previous quarter, but full-year growth down. could be the worst in China for almost half a century.

Gita Gopinath, a researcher at the International Monetary Fund (IMF), said inflation in the United States remains stubborn and growth in the European Union (EU) is expected to slow to 0.5%.

The OPEC+ production cuts lured portfolio investors and money back into the oil market as OPEC+ continued to buy massive production targets for the second week in a row after lowering it more than expected.

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